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Natalka [10]
3 years ago
8

Your firm is considering an investment that will cost $920,000 today. The investment will produce cash flows of $450,000 in year

1, $270,000 in years 2 through 4, and $200,000 in year 5. The discount rate that your firm uses for projects of this type is 11.25%. What is the investment's net present value
Business
1 answer:
stich3 [128]3 years ago
5 0

Based on the information given the investment's net present value is $192,369.06.

Using this formula

Net Present Value(NPV)=-Initial cost+ Cash flow during time period/(Discount rate+ Cash flow time)

Let plug in the formula

NPV=-920,000+450,000÷(1+0.1125)^1+270,000÷(1+0.1125)^2+270,000÷(1+0.1125)^3+200,000÷(1+0.1125)^4

NPV=-920,000+450,000÷(1.1125)^1+270,000÷(1.1125)^2+270,000÷(1.1125)^3+200,000÷(1.1125)^4

NPV=$192,369.06

Inconclusion the investment's net present value is $192,369.06.

Learn more here:<em>brainly.com/question/13451251</em>

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According to the path-goal theory of leadership, the level of involvement a manager utilizes should (1) be the same for all empl
harkovskaia [24]

Answer:

1. None of the above

2. All of the above

Explanation:

According to the path-goal theory of leadership, the level of involvement a manager utilizes should (1) be the same for all employees in the department, (2) be either low or high management involvement regardless of the circumstances, and (3) not be influenced by subordinates' expectations. Which statements are correct?

<u>NONE OF THE ABOVE</u>

<u>The Path-Goal theory of leadership stipulates that managers should adapt a leadership style that is employee oriented for the purpose of organizational goal achievement. </u>

<u />

This is an ability issue. When a manager's performance deteriorates because manager's ability has deteriorated. The steps to be taken will be in the order below:

(1) Determine if the resources are adequate,

(2) retrain the individual, and

(3) redesign the job.

<u>All of the above steps are correct in that order</u>

3 0
3 years ago
What is the opportunity cost in this scenario?
adoni [48]
An opportunity cost is defined as the loss of a potential gain from going with another alternative. The opportunity costs in this situation are everything that Harry gave up, to see his parents. Although he gained the dinner with his parents that ha hadn't seen in awhile, he gave up a lot of other options on how he spent his weekend.
8 0
3 years ago
A large stock dividend:
Sladkaya [172]

Answer:

Results in a transfer of retained earnings to common stock and additional paid-in capital.

Explanation:

A stock dividend can be defined as the dividend which is distributed to shareholders on the basis of their percentage of ownership. Stock dividend is paid in form of shares and not in form of cash.

A stock dividend can also be described as a dividend payment paid by a company to its existing stakeholders from the profit or earnings that has been derived from the company during a financial year period.

The main advantage of stock dividend is that taxes will not be paid on the stock dividends until the shares have been sold.

5 0
3 years ago
What should the west be doing to keep healthy economies? what are their options?
Korolek [52]

Answer:

The west should pursue policies that encourage economic growth and stability. Their options include:

1. Pursuing sound monetary policies that promote economic growth and stability.

2. Adopting pro-growth fiscal policies that help to increase government revenue and reduce government spending.

3. Promoting free trade and investment that allow for the efficient allocation of resources and the maximization of economic growth.

4. Pursuing policies that increase the flexibility of their economies and allow for a quick response to changing economic conditions.

5. Encouraging entrepreneurship and innovation that lead to new products and services and create jobs and economic growth.

4 0
1 year ago
X-treme Vitamin Company is considering two investments, both of which cost $22,000. The cash flows are as follows:
lukranit [14]

Answer:

0.88 years

1 year

Explanation:

Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.

For project A:

Amount invested = $-22,000

Amount recovered in year 1 = $-22,000 + $25,000 =$-3000

The amount invested is recovered In 22,000 / $25,000 = 0.88 years

For project B:

Amount invested = $-22,000

Amount recovered in year 1 = $-22,000 + $22,000 = 0

The amount invested is recovered in a year

I hope my answer helps you

8 0
3 years ago
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